"I wouldn't bet a whole lot of money on those lawsuits being successful. I think most of these arguments were settled as a result of the Civil War." - John Rivers, president of the Arizona Hospital and Healthcare Association, on the lawsuit being filed by 13 state attorneys general against the federal health care bill.

So far, lawmakers and the Governor's Office have avoided conjuring the greatest fear of local governments - changing the formula that determines who gets what from the collective pot of money they all share.

If anyone doubts the state's troubled economy is clobbering Arizona's cities and towns, they only have to look in the newspaper. "Phoenix details plan for drastic cutbacks;" "Cities, towns resort to layoffs;" "Falling revenues affect city of Prescott operations."

So far this year, some lobbyists haven't even bothered to ask lawmakers to introduce a bill on their behalf.
Others have big goals, despite the widespread perception that lawmakers will be focused almost entirely on the budget deficit.

While other contributors to state revenues have dropped off severely of late, the Arizona Lottery has been a growing source of tens of millions of dollars per year since its inception in 1980.
The lottery funds a variety of voter-approved state programs in areas such as education, health and transportation and has contributed $2.3 billion in all to its beneficiaries.

The Arizona Supreme Court announced on Dec. 2 it will not hear a lawsuit filed by local governments that sought to challenge legislation affecting land development and public benefits for immigrants.
The petition for special action filed with the court on Nov. 23 by the League of Arizona Cities and Towns charged that the provisions in question were unconstitutionally included in a state budget bill.